Published: Friday, November 16, 2012 at 1:00 a.m.

Last Modified: Thursday, November 15, 2012 at 8:10 p.m.

Florida and other states have followed similar paths on transportation -- raiding trust funds, failing to adjust tax formulas and allowing the condition of infrastructure to deteriorate.

In an editorial yesterday, we described the sorry state of the federal transportation fund. The national fuel tax, 18.4 cents per gallon of gas, has not been increased since 1993.

Congress declined to raise the tax last June when it passed a two-year, stop-gap transportation plan for road, bridge and transit spending. Instead, $18.8 billion in general taxpayer funds were allocated, in addition to fuel-tax revenue, to keep spending at current levels -- about $52 billion a year -- through 2014. At that point, without additional funding, the federal Highway Trust Fund is forecast to go broke.

It's not as though the United States has been a profligate spender on transportation. Building America's Future, a bipartisan organization, reported last year that the U.S. spends 1.7 percent of the gross domestic product on transportation infrastructure. In comparison, Canada spends 4 percent and China 9 percent. What's worse, a 2012-13 study by the World Economic Forum ranked the U.S. 25th internationally for infrastructure quality. (Andrea Campbell, a political science professor at MIT, cites these figures in the new edition of Foreign Affairs.)

Studies and recommendations

The National Surface Transportation Infrastructure Financing Commission, established by Congress, said in a 2009 report that all levels of government are spending $138 billion a year less than needed to maintain and modestly improve the system.

The commission recommended switching to a tax based on number of miles driven instead of the amount of gas purchased. Such a tax, it said, would more closely reflect use of the transportation network and encourage Americans to drive less or make car trips more efficient.

To ease the transition to such a system, the commission proposed increasing the gas tax by 10 cents per gallon and indexing it to inflation.

In Florida, an advisory council -- comprised of executives and elected officials from the state's 26 metropolitan planning organizations -- has proposed some of the same ideas.

The MPOs prioritize transportation projects on the regional level and are most familiar with local needs. (Manatee and Sarasota counties form one MPO; unincorporated Charlotte County and the city of Punta Gorda form another.)

The advisory council met for two years to study funding options and, in April, proposed -- to the governor and Legislature -- its top ideas for increasing revenue and efficiency in collections. The Sarasota-Manatee MPO board is expected to decide in December whether to support the proposals.

According to council chairman Mike Howe, executive director of the Manatee-Sarasota MPO, the panel focused on potential state solutions rather than relying on federal responses. Smart move.

The MPOs estimate that transportation projects on the books in Florida are underfunded by $60 billion. In comparison, Florida spends about $6.5 billion annually on transportation; without an infusion of revenue, the state will never close that gap.

Like the federal commission, the council in Florida suggested indexing all state, county and municipal fuel taxes to the Consumer Price Index. This proposal makes sense because per-gallon taxes are inflexible.

The council recommended raising the State Highway Fuels Sales Tax from the current rate of 12.6 cents per gallon by 2 cents annually -- for each of the next five years -- and indexing the levy to account for inflation. This is another sensible proposal, especially if part of the money replenishes the state transportation fund -- $383 million of which was diverted to cover shortfalls in the general revenue budget (the same tactic employed by Congress).

Driving the economy

We understand that businesses, individuals and the U.S. economy are sensitive to fuel costs, which include taxes.

However, those same constituencies suffer economically when local, state and national transportation is insufficient. Travel times are extended, delivery schedules are disrupted and the safety of drivers and motorists is at risk (remember that vehicle and driver insurance rates are tied to risks).

Just as important, the revenues generated from national and state fuel taxes are economic drivers. Studies by MPOs indicate that every $100 million invested in transportation creates 1,075 jobs and $500 million in associated economic activity.

Transportation spending is, in short, good for the private sector and the economy. Whether the projects are federal, state or local, most of the work -- feasibility studies, designs, engineering and construction -- are performed by contractors.

The need to expand, improve and maintain America's and Florida's transportation infrastructure is clear, and the benefits of making the necessary investments are apparent. With gas prices down and domestic production up, Florida and the federal government should act quickly to invest in the future of the state and nation.

<p>Florida and other states have followed similar paths on transportation -- raiding trust funds, failing to adjust tax formulas and allowing the condition of infrastructure to deteriorate.</p><p>In an editorial yesterday, we described the sorry state of the federal transportation fund. The national fuel tax, 18.4 cents per gallon of gas, has not been increased since 1993.</p><p>Congress declined to raise the tax last June when it passed a two-year, stop-gap transportation plan for road, bridge and transit spending. Instead, $18.8 billion in general taxpayer funds were allocated, in addition to fuel-tax revenue, to keep spending at current levels -- about $52 billion a year -- through 2014. At that point, without additional funding, the federal Highway Trust Fund is forecast to go broke.</p><p>It's not as though the United States has been a profligate spender on transportation. Building America's Future, a bipartisan organization, reported last year that the U.S. spends 1.7 percent of the gross domestic product on transportation infrastructure. In comparison, Canada spends 4 percent and China 9 percent. What's worse, a 2012-13 study by the World Economic Forum ranked the U.S. 25th internationally for infrastructure quality. (Andrea Campbell, a political science professor at MIT, cites these figures in the new edition of Foreign Affairs.)</p><p>Studies and recommendations</p><p>The National Surface Transportation Infrastructure Financing Commission, established by Congress, said in a 2009 report that all levels of government are spending $138 billion a year less than needed to maintain and modestly improve the system.</p><p>The commission recommended switching to a tax based on number of miles driven instead of the amount of gas purchased. Such a tax, it said, would more closely reflect use of the transportation network and encourage Americans to drive less or make car trips more efficient.</p><p>To ease the transition to such a system, the commission proposed increasing the gas tax by 10 cents per gallon and indexing it to inflation.</p><p>In Florida, an advisory council -- comprised of executives and elected officials from the state's 26 metropolitan planning organizations -- has proposed some of the same ideas.</p><p>The MPOs prioritize transportation projects on the regional level and are most familiar with local needs. (Manatee and Sarasota counties form one MPO; unincorporated Charlotte County and the city of Punta Gorda form another.)</p><p>The advisory council met for two years to study funding options and, in April, proposed -- to the governor and Legislature -- its top ideas for increasing revenue and efficiency in collections. The Sarasota-Manatee MPO board is expected to decide in December whether to support the proposals.</p><p>According to council chairman Mike Howe, executive director of the Manatee-Sarasota MPO, the panel focused on potential state solutions rather than relying on federal responses. Smart move.</p><p>The MPOs estimate that transportation projects on the books in Florida are underfunded by $60 billion. In comparison, Florida spends about $6.5 billion annually on transportation; without an infusion of revenue, the state will never close that gap.</p><p>Like the federal commission, the council in Florida suggested indexing all state, county and municipal fuel taxes to the Consumer Price Index. This proposal makes sense because per-gallon taxes are inflexible.</p><p>The council recommended raising the State Highway Fuels Sales Tax from the current rate of 12.6 cents per gallon by 2 cents annually -- for each of the next five years -- and indexing the levy to account for inflation. This is another sensible proposal, especially if part of the money replenishes the state transportation fund -- $383 million of which was diverted to cover shortfalls in the general revenue budget (the same tactic employed by Congress).</p><p>Driving the economy</p><p>We understand that businesses, individuals and the U.S. economy are sensitive to fuel costs, which include taxes.</p><p>However, those same constituencies suffer economically when local, state and national transportation is insufficient. Travel times are extended, delivery schedules are disrupted and the safety of drivers and motorists is at risk (remember that vehicle and driver insurance rates are tied to risks).</p><p>Just as important, the revenues generated from national and state fuel taxes are economic drivers. Studies by MPOs indicate that every $100 million invested in transportation creates 1,075 jobs and $500 million in associated economic activity.</p><p>Transportation spending is, in short, good for the private sector and the economy. Whether the projects are federal, state or local, most of the work -- feasibility studies, designs, engineering and construction -- are performed by contractors.</p><p>The need to expand, improve and maintain America's and Florida's transportation infrastructure is clear, and the benefits of making the necessary investments are apparent. With gas prices down and domestic production up, Florida and the federal government should act quickly to invest in the future of the state and nation.</p>